What type of mortgage loan to choose? --> 2 simple rules

First basic rule: the less you borrow, the cheaper.

The extent of your own contribution is being expressed with the term "Loan-to-Value Percentage (LTV)":
this is the relationship, in percentage, between the requested loan amount and the appraised value of the property.

LTV of 50%:

You finance half of the purchase price and all attorneys' fees (notary costs)

LTV of 80%:

You finance 20% of the purchase price and all attorneys' fees

LTV of 100%:

You only finance the attorneys' fees

LTV of 120%:

You don't want to finance anything. This is possible with our Habitat Plus® Mortgage Loan.

Second basic rule: the more variable the formula, the cheaper the interest rate.

The flexibility of your loan is being expressed with the term "Variability":
this is the number of years it takes before your interest rate can be adjusted to the, at that moment, present market conditions

1-1-1:

this rate can be adjusted every year at the (at that moment) present market conditions

3-3-3:

your rate will be adjusted to the market conditions every 3 years

5-5-5:

your rate will be adjusted every five years

10-5-5:

your rate can be adjusted after ten years the first time and afterwards every 5 years. This is what we call a semi-fix interest rate.

Fixed-rate:

your rate is fixed and therefore unchangeable during the whole duration of your loan.

Fixed-rate or annual adjustable-rate mortgage loans (ARM)?

... fixed-rate! They all cry out immediately. We don't fully agree this statement.
Often we can offer you a 1-1-1 or even a 3-3-3 within a formula interest rate cap 2% and without a downward limitation.
In other words, the interest rate of such a mortgage loan can increase with a maximum of 2% with regard to the initial interest rate.
So this formula is, even in a worst-case scenario, hardly more expensive than the fixed-rate loan of for example 20 years.
Moreover we also noticed that interest rates hardly changed over the last 5 years, and on the contrary even decreased a little.
We also noticed that financial institutions are not free to change the interest rate but have to follow a certain mechanism, laid down by the law. The adaptation of such interest rates is joint to the linear debentures of the state at 1 or 3 years (the so-called index). It is very simple: if the index falls with one percent, your interest rate will do the same and vice versa.
In brief, it is certainly worth while to weigh the pros and cons but a fixed-rate mortgage loan is, given the present historical low interest rates, certainly an excellent choice.